Gold is back above the 1600 USD/oz after it managed to defend the support on the 1550 USD/oz. Gold is climbing higher despite the strong US dollar and relatively high demand for stocks. The situation is super interesting, especially given that the current movements go against the common theory. Most of the traders are taught that rising stocks and USD create a negative environment for the Gold. As You can see, the theory is one thing and practice is the other. Just 3 dollars more and XAU/USD will climb to the highest levels since the beginning of 2013. Chances for that are very high.
As we said, indexes are doing well. On Monday, both S&P 500 and DAX were on the all-time highs. That is a good sign. The bad sign might be that those highs could create the head od the head and shoulders pattern. On both indexes, the price is currently trying to create a right shoulder. Buyers are still safe. In both cases, the price is above the necklines. On S&P 500 the neckline is around 3355 points and on the DAX around 13577 points. Breakout of those two levels can brings us a mid-term correction but so far, buyers do not seem worried.